UK Begins Experimentation Phase Of Its Regulated Liability Network
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The biggest banks in the United Kingdom are anticipating the experimentation stage of a Regulated Liability Network. This network is designed as a financial infrastructure for programmable money, functioning on a shared ledger among several banks.
The Regulated Liability Network aims to develop a simple and innovative platform, allowing conventional deposits and tokenized deposits using a shared ledger.
All the top-tier financial institutions such as Citi, Barclays, NatWest, Lloyds, and HSBC have announced their participation in the RLN experimentation phase. Other participating banks include Santander, Visa, Mastercard, Virgin Money, Standard Chartered, Santander, and Nationwide.
The Regulated Liability Network Reveals Its Technology Partners
The Network has made R3 and Quant its technology partners. Furthermore, the Digital Cross-Connect (DXC) company is expected to lead the system integration activity.
UK Finance is positioned to coordinate this project with assistance from Linklaters and Ernst & Young Global Limited. The plan is to create a prototype for easy access to the shared platform’s benefits. Trials will go on until summer.
After the trials, a report centered on unveiling technological issues, legal issues, and customer benefits will be released. Other fintech firms were also invited to participate.
The Managing Director of UK Finance’s Payment Innovation and Resilience sector spoke on the project. He revealed that the project is aimed at testing the possible benefits of a UK Regulated Liability Network as an innovative platform. This network will be vital in advancing and futureproofing the United Kingdom’s financial infrastructure.
The RLN Is Set To Reduce The Rate Of Online Purchase Scams
The objective of this testing is to experiment with three different cases. One application will create conditional payments that can only be completed after the delivery of the goods. This will help reduce the rate of scams for online purchases.
The second application will involve testing house transaction payments in collaboration with DLT firm Coadjute. The application will implement a delivery versus payment system for digital bond transactions.
Citi UK Chief Executive Officer, Tiina Lee, stated that Shared ledger technology can provide highly accessible, programmable, and multi-asset settlement venues. These venues can support the increasing need for a highly enhancing digital economy.
Many top participating banks have experience with the Corda enterprise blockchain of R3. For instance, Nationwide, Natwest, and Lloyds have all ventured into Coadjute, which uses Corda. Furthermore, Barclay previously tested Coadjute and several other Corda-based applications like Finteum.
The Regulated Liability Network is projected to be a revolutionary solution for cross-border settlements, allowing for seamless and fast payments. It is set to form a novel shared ledger for virtual currencies that are programmable and multi-faceted.
